Next Energy has been appointed by Southway Housing Trust to deliver a large-scale retrofit programme in South Manchester under the Southway SHDF Wave 3 project, supported through the Greater Manchester Combined Authority’s (GMCA) Warm Homes: Social Housing Fund. The partnership will focus on improving around 1,500 social homes so residents can enjoy warmer, healthier and more energy-efficient living for years to come.
A Strategic Partnership for 1,500 South Manchester Homes
The Southway SHDF Wave 3 programme will see Next Energy design and deliver a coordinated package of energy efficiency measures across approximately 1,500 Southway properties between February 2026 and 2028. Each home will receive a tailored plan, so the right combination of insulation, ventilation and renewable technologies is installed in line with PAS retrofit standards and the property’s starting Energy Performance Certificate (EPC) rating.
Works will concentrate on homes across South Manchester, reflecting Southway Housing Trust’s core neighbourhoods and GMCA’s strategy to upgrade social housing stock to at least EPC band C wherever feasible. This contract underlines Southway’s long-term commitment to tackling fuel poverty, reducing carbon emissions and improving the quality of the area’s homes.
“Our tenants will benefit from warmer homes and lower energy bills and we are excited to be working with Next Energy on this project” – Scott Murray (Head of Assets Management and Sustainability)
Funded through Southway Housing Trust and The Warm Homes: Social Housing Fund (WH:SHF)
The programme is being funded through Southway Housing Trust (WH:SHF) and the GMCA’s Warm Homes: Social Housing Fund (WH:SHF), which forms part of the government’s wider Warm Homes: Social Housing Fund and Social Housing Decarbonisation Fund framework for 2025 to 2028. Government guidance for Wave 3 confirms that this funding is designed to upgrade social housing to at least EPC band C, cut residents’ energy bills and support local jobs.
In Greater Manchester, funding is devolved to the GMCA, which then works directly with social housing providers, such as Southway, to develop area-based retrofit programmes aligned with local net-zero plans. Southway’s South Manchester scheme is one of a portfolio of projects across the region that aim to deliver high-quality, whole house retrofit at scale through strategic partnerships.
Whole House Measures to Deliver Warmer, More Energy Efficient Homes
Under the contract, Next Energy will deliver a set of core measures tailored to each property: cavity wall insulation, loft insulation, solar PV systems, home ventilation upgrades, low energy lighting, and door undercuts to improve airflow and reduce condensation risk. This combination reflects a fabric first approach, where improving the building’s insulation and air tightness comes before, or alongside, the introduction of renewable technologies such as solar.
The aim is to help homes retain heat for longer, use less energy to maintain comfortable temperatures, and maintain healthier indoor air quality, which is a central objective of both the Social Housing Decarbonisation Fund and the Warm Homes: Social Housing Fund. For local residents, this should translate into lower energy bills, more consistent warmth and reduced issues linked to damp and mould in homes over the long term.
Building on Next Energy’s ECO4 and GMCA Commitments
Next Energy’s appointment builds on its existing role as an approved ECO4 Local Authority Flexible Eligibility installer for the GMCA (through the GMCA Energy Company Obligation Scheme), delivering whole house upgrades in boroughs such as Bolton, Salford and Wigan. The ECO4 scheme focuses on improving the least efficient homes in EPC bands D to G, often combining insulation, heating upgrades, and renewable energy in a single coordinated project.
That experience of working at scale across Greater Manchester, under both ECO4 and other government-backed schemes, gives Next Energy a strong platform to mobilise quickly for Southway’s programme and maintain robust quality assurance, resident engagement and health and safety processes. The Southway contract demonstrates not only the trust placed in Next Energy by one of the region’s major housing providers but also the breadth of its capability across multiple funding streams.
“This contract is going to benefit 1500 homes and we cannot wait to get started!” – Anthony Daly (Operations Director)
Next Energy looks forward to working closely with the Southway Housing Trust, The Greater Manchester Combined Authority and the residents of South Manchester to deliver a programme that showcases what high-quality, large-scale retrofit projects can achieve for families living in the community.
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